Education loan is a way to help economically backward parents to pursue higher studies of their choice. Eligible candidates who need financial assistance for their higher studies in India or abroad can take an education loan.
There are a few things you need to understand to choose the right education loan for your needs. Five of the most important of them are as follows:
- Eligibility Criteria
The first thing to know before taking a loan is the eligibility criteria. As each bank is different, the criteria will also vary. Bank will consider credit score, income, existing loan, age etc. Find out about the courses, expenses and colleges they offer loans from the bank you are interested in and get the loan accordingly.
- Loan categories
Education loans are classified as secured loans and unsecured loans. For secured loan loan amount you have to put some collateral like house. Understand this before applying and make a decision. Know exactly the interest rate, loan amount and tenure. - interest rate
Interest rates are a major consideration while comparing banks. The education loan interest rate, loan amount and tenure should be clearly understood by each bank.
Some of the best banks in India offer education loans at 11.5% per annum. Consider banks like these.
ഇന്ത്യയിലെ മികച്ച ചില ബാങ്കുകൾ 11.5% വാർഷിക നിരക്കിൽ വിദ്യാഭ്യാസ വായ്പ നൽകുന്നുണ്ട്. ഇതുപോലുള്ള ബാങ്കുകളെ പരിഗണിക്കുക.
- Margin money
Margin money is the amount you pay as a down payment, as you would with other loans like a home loan. This margin can be seen as a specified percentage of the course fee. For example, If the fee for a course is Rs 10 lakh, the bank may sanction a loan of up to Rs 8 lakh depending on eligibility. But you will have to pay the remaining Rs 2 lakh on your own.
- Loan Term
The last thing to consider is the tenure of the loan. Top banks in India offer secured loan tenure up to 10 years. The tenure of unsecured loan is up to 8 years. A period of about six months will be allowed after completion of the course. At this point you only have to pay the interest on the loan.
